Hi. My husband is having to reduce his hours at work from 30 hrs per week to 25. How will this effect our tax credit payments? He is the only one currently working and we have four children. Thanks xxx
If you're responsible for children you need to be aged at least 16, and work the following hours to get Working Tax Credit: • if you're single, you need to do paid work of at least 16 hours a week • if you're in a couple, your joint paid working hours need to be at least 24 a week, with one of you working at least 16 hours a week
But will him having to reduce his hours (due to his company restructuring all the staff) mean that we will get more tax credits. Or will they stay the same. Starting to worry about money now and I'm trying to get back into work myself.
At the moment your award will be based on last years income so the income change won't affect it UNLESS you give them an estimate for the current tax year which is over £2500 less than last year. However underestimating current year income is one of the most common causes of overpayment so you need to be really sure of your figures.